Investors are always searching other investment opportunities of funds and bonds, energy and royalty trusts are a safe and long-term investment with dividend. It’s generally offer the investors a high dividend yield on a monthly basis, avoid double taxation. Royalty trusts are mostly found in the U.S. and Canada.
Below I am sharing five high yielding securities which offer monthly distributions or dividends.
- Marine Petroleum Trust (NYSE: MARPS): - Marine Petroleum Trust ("Marine") is a royalty trust that was founded in 1956 under the laws of the State of Texas. Marine Petroleum Corporation operates as a royalty trust in the U.S. as of Sep. 19, 2012. The stock has a low market cap of $29.16 million, with around a million in cash and no debt. This royalty trust was developed for the sole purpose of providing an orderly and practical means for the administration and liquidation of rights to payments from certain oil and natural gas leases- primarily in the Gulf of Mexico. The best thing of this royalty trust is high dividend yield i.e. 9.10%.
- SandRidge Mississippian Trust I (NYSE: SDT):- SandRidge is the leading operator in the Mississippian Oil Play of northern Oklahoma and western Kansas. This is focused on drilling low-risk; conventional, high rate-of-return oil wells in shallow carbonate reservoirs. SDT engages in the acquisition and holding of royalty interests particularly in oil and natural gas properties which is located in the United States. The company was founded in 2010 and is based in Austin, Texas. The market cap is 406.28 million. This trust pays out a dividend yield of 18.40%.
- Baytex Energy (NYSE: BTE): - Baytex energy is a developer and producer of crude oil and natural gas in the Western Canadian Sedimentary Basin and in the Williston Basin in the United States. This company pays a monthly dividend on its common shares which are traded on the Toronto Stock Exchange and the New York Stock Exchange under the symbol BTE. In 2013 the production rate is expected 56,000 to 58,000 Boe per day. The market cap is 5.19 billion. This trust pays out a dividend yield of 5.90%.
- Enerplus (NYSE: ERF): - Enerplus was a Canadian royalty trust now this is converted into a traditional energy exploration and production company. This is an income-oriented investment in the oil and gas industry. The main objective of this company is creating value for investors by providing organic growth in production and reserves complemented by a monthly dividend. In the U.S. holds large stakes in the Bakken and Marcellus Shale assets. The market cap is 2.85 billion. This pay out a dividend yield of 7.30%.
- BP Prudhoe Bay Royalty Trust (NYSE: BPT): - BP Prudhoe Bay Royalty Trust is a United State oil and natural gas royalty trust. The company holds overriding royalty interests constituting a non-operational interest in minerals in the Prudhoe Bay oil field located on the North Slope in Alaska. The market cap is 1.70 billion. This trust pays out a dividend yield of 11.60%.
Royalty trusts offer high yields and monthly income, but sometimes its price is high and securities are specific oil field. These trusts prove a better investment field if you believe the stability of oil price, even it is happening in the case of natural gas prices. In the end, investors should beware and careful while assessing high yielding monthly distributions and dividends in this sector. These securities are fluctuating in the prices therefore investor should have patience and risk holding capacity.